Relative to Investment Grade, High Yield Bonds are Still a Screaming Buy

Recently one of our favorite bloggers came out with a piece “The US High Yield Market Looks Overheated.”  There are some compelling arguments and data in the piece to back up that view, which we will not take the other side of.  What we will do however, is point out that if  you are going to be in bonds, there is a strong argument that high yield is still the place to be.  In fact, Learn Bonds believes that junk bonds (non-investment grade but still rated) will provide returns that are at least 2% per year higher than investment grade bonds for at least the next few years.

http://www.forbes.com/sites/marcprosser/2012/08/14/relative-to-investment-grade-high-yield-bonds-are-still-a-screaming-buy/